September 24, 2012
Geotargeting is a precision marketing tool that helps online businesses drive maximum results by changing up content for visitors based on the relevance of their location. In a prior Website Testing Wins post, for example, we looked at how geotargeting allowed an online retailer to take a global approach for global success.
Another way to leverage location is to identify visitors from states where you face brisk competition so you can make a more compelling offer. That's the route a specialty apparel retailer took in order to win business away from rivals in Texas.
When visitors from Texas arrived at the retailer's website, the test group saw banner ads throughout the site alerting them to a free shipping offer. To make the deal even more persuasive, the retailer included a deadline to prompt visitors to take action quickly. All that was left to do was track the returns and see if the offer improved response from this audience segment well enough to pay for itself.
The combination of a great incentive plus scarcity (a key motivator for people) produced conclusive results for the retailer. Not only did it lead to a 20% increase in net contribution, it also drove a 48% increase in new customer acquisition. That's marketing gold, giving the retailer a chance to grow these first-time buyers into regular customers.